The Federal Government helps German firms in all sectors and banks to do business internationally and finance these deals.

Bilateral Investment Treaties

By concluding bilateral investment treaties with developing and emerging economies, the Federal Government creates a stable environment for German foreign direct investment. The treaties furnish investors with comprehensive legal protection for their investments under international law and make it easier for SMEs in particular to develop foreign markets. Also, they provide the legal protection that forms the basic precondition for the assumption of federal guarantees for German foreign direct investment in order to provide coverage against political risks.

Under the Lisbon Treaty, competence for foreign direct investment (including for offering protection for this foreign direct investment) was transferred to the European Union in 2009. This means that the European Commission has the right to negotiate treaties for investment protection for the EU and its 27 Member States. Over time, these are to replace the bilateral treaties concluded by individual Member States.

Financial support

The instruments of AKA Bank, KfW-IPEX and DEG - Deutsche Investitions- und Entwicklungsgesellschaft m.b.H. are available to finance exports, investments and projects abroad.

AKA Bank offers comprehensive support around the financing of export deals and the administrative processing of international transactions in connection with trade financing. KfW IPEX offers global project and export financing services, including structured financing for large-scale projects. Both offer financing with or without government hedging against risks (Hermes coverage).

DEG supports private-sector investment in developing countries and emerging economies. Companies receive tailored financing solutions drawing on funding programmes, as well as individual consultancy. From its first day, this subsidiary of KfW has concerned itself primarily with supporting German SMEs. Through its cooperation with development financing institutes such as EDFI (European Development Finance Institutions), DEG is able to draw on a wide range of experience and offer efficient financing and consultancy solutions. The Federal Ministry for Economic Affairs and Climate Action has one seat on the DEG supervisory board.

For investments in developing countries or emerging economies, there are also various support services offered by the Federal Ministry for Economic Cooperation and Development. To learn more about the range of financing instruments, supportive measures, consultancy services and cooperation opportunities for business, please consult the relevant leaflet.


Apart from AKA bank, the German Investment and Development Company (DEG) and the Federal Ministry for Economic Cooperation and Development, other national and international organisations such as the European Development Fund, the World Bank, the United Nations, the regional development banks etc. also launch calls for projects involving investments in developing countries. Germany companies can act as contractors for these. For information about these calls for projects, please consult the above organisations’ websites or that of Germany Trade and Invest GbmH.